Answered: 20. How may the following be used in…

20. How may the following be used in calculating the break-even point in units Fixed costs CM per unit Numerator a. Denominator b. Denominator Not used C. Numerator Not used d. Numerator Denominator

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 5MCQ

See similar textbooks

Related questions

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Formula: Contribution margin per unit = Selling price per unit – Variable cost per unit.…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs. The fixed cost…

Q: True or false: The breakeven point in dollars can be computed by dividing the contribution margin…

A: Solution Concept Breakeven point is the point at which the contribution generated covers the fixed…

Q: 22. At the break-even point, fixed cost is aiways a. Equal to the contribution margin h. More than…

A: The Break-even point is the level of operation at which the company is in a no-profit / no loss…

Q: Before a company reaches the breakeven point Select one: a. The fixed cost is equal to zero b. The…

A: Contribution is calculated as Sales less variable costs. Sale price is the price at which the…

Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?…

Q: Which cost will fall as production is reduced? Total variable costs Variable costs per…

A: Production is the total output produced by the manufacturer during the period.

Q: Determine the missing amounts in the following table: unit sales price unit varible costs unit…

A: Contribution margin refers to relationship between Sales and Fixed cost plus Profit.

Q: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…

Q: In determining the number of Break Even (B-E) units to sell in order to obtain the amount of…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: In the formula y = a + bX, y represents a. total fixed cost b. total variable cost c. total cost…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…

Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…

A: Break even point is the point of sales where business earns no profit no loss.

Q: Which of the following formulas is used to calculate break-even point in units? a.Break-even point…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: Which of the following cost per unit remains fixed in respect of the volume of production. a.…

A: Some cost do not change with the level of activity of production.

Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15 and contribution margin per units…

A: Solution: Break even point (units) = Fixed cost / Contribution margin per unit = 75000 / 25 = 3000…

Q: cost of P10 per unit. What is the level of production in units that would make NUBD to be…

A: Indifference point is the point at which NUBD's cost of production is same at both the levels of…

Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…

A: The break-even point is that level of the unit where the company neither incurs any gain nor any…

Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…

A: Margin of Safety(Amount) : Total Revenue-Breakeven point Margin of Safety(Units) : Current Sales…

Q: Given the following information. answer the questions:• The ratio of variable cost per unit divided…

A: (a) Draw the cost volume profit diagram: Units Sales ($1) Variabe costs ($0.25) Fixed costs…

Q: 22) Which of the following expressions can be used to calculate break-even sales revenue with the…

A: Break-even analysis is a technique used widely by production management. It helps to determine the…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: decrease in variable cost

A: Break even point is the level of sales at which an entity begins to generate profit. Break even…

Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: Sales are $400000 and variable costs are $260000. What is the contribution margin ratio? A. 65%. B.…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: If the total fixed costs Omr 75000, variable cost per unit Omr 15, contribution margin (CM) Omr 30…

A: Margin of safety(in value) = Profit/PE ratio

Q: Which of the following would produce no change in the contribution margin per unit? Select one: O a.…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: A break-even chart has been set up to show the current break-even point. Due to an increase in the…

A: Introduction Break-even point: Break-even point is the point of sales at which total cost is equal…

Q: g) Briefly explain the impact of each of the following scenarios on the break-even point and the…

A: Margin of safety: The excess of actual sales over the break-even sales is known as margin of safety.…

Q: 3. Each of the following would affect the break-even point, except a change in the a. variable costs…

A: A Break-even point is a spot where the aggregate cost and income of a business will become equal.…

Q: If fixed costs are $561,000 and the unit contribution margin is $8.00, what is the break-even point…

A: Meaning of Break Even Point:- The break-even point can be defined as a point where total costs…

Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…

Q: Which of the following would not be an acceptable way to express contribution margin? * 100% minus…

A: The correct option is fourth. As the formula of dividing variable cost by sales revenue is used for…

Q: if Actual sales are OMR 490000, Total Fixed costs OMR 135000, Selling price per unit OMR 50, and…

A: Ans. Break even point = Fixed cost ÷ Contribution per unit And margin of safety is the difference…

Q: True or False. Variable costs as a percentage of sales are equal to 100% minus the contribution…

A: Variable cost = Sales - contribution margin Note - Sales is the base for Variable cost

Q: 20. If Q equals the level of output, P is the selling price per unit, V is the variable cost per…

A: Break-Even Point is a point where Total Cost is equal to Total Revenue. Contribution ( Sales -…

Q: e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed…

A: Solution:- E)Re computation of the break-even point in units, assuming that variable cost increased…

Q: The break-even point can be calculated with the following formula: Total fixed expenses / (Variable…

A: Break-even point = Total fixed expenses / (Selling price per unit - Variable cost per unit)

Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of…

A: The monetary value paid for the acquisition of something, or to run the operations of the…

Q: 17. "Within the relevant range, if there is a change in the level of the cost driver, then:"…

A: Fixed cost:- Fixed cost is defined as the cost that do not change due to change in the level of…

Q: The unit contribution margin is computed by ⦁ subtracting the variable cost per unit from the…

A: Variable costs are the costs that tend to change with the change in production level.

Q: 2. Break-even analysis assumes that over the relevant range a. Unit revenues are nonlinear. b. Unit…

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution Margin per unit refers to the excess value over the variable expenses per unit when…

Q: Units Produced Production Costs P 4,000 8,000 6,000 7,500 8,500 7,250 Month April Маy June July…

A: High-Low points method: The Highest activity of units produced is in the month of June - 900 units…

Question

100%

20. How may the following be used in calculating the break-even point in units
Fixed costs
CM per unit
Numerator
a.
Denominator
b.
Denominator
Not used
Numerator
Not used
C.
d.
Numerator
Denominator

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.